Auditors report district likely to receive clean opinion; federal guidance delay pushes final sign‑off to January

Auditor Jeffrey Kowalczyk, representing audit firm Barbara Kane Thornton, told the Cornwall‑Lebanon School District board that auditors anticipate issuing an unmodified (clean) opinion on the district’s 2024‑25 financial statements and on compliance for its major federal programs.

“We are anticipating issuing a clean or unmodified opinion on the financial statements,” Kowalczyk said, and added the team found no material weaknesses or significant deficiencies that must be reported to the board.

Kowalczyk explained why a final federal single‑audit opinion is delayed: the U.S. Department of Education’s federal compliance supplement — the document auditors use to determine required testing for federal programs — has not been finalized because of a recent federal government shutdown. He said auditors are comfortable with the testing already performed but cannot issue the federal audit report until the supplement is released in final form. As a result, administration and auditors indicated they expect to return in January to finalize and approve the single audit rather than at the board’s December meeting.

The presentation included results and context: the district’s entity‑wide statements show an improved net position of roughly $8 million; the change largely reflects capital outlays that convert cash into capital assets. Kowalczyk also described a new accounting standard for compensated absences (accrued but unpaid sick and vacation time) that increased the district’s compensated‑absences liability by about $5.4 million on the full‑accrual statements. He emphasized that the change affects entity‑wide, full‑accrual reporting and does not change the district’s budgetary (general‑fund) balance.

On fund‑level performance, the auditor noted the district closed the year with general‑fund revenues near $111 million versus budgeted revenues of about $103 million and that expenditures finished within roughly 1% of budget. Kowalczyk said those results and the internal‑control testing support the planned unmodified opinions.

Board members asked about timing and the district’s obligations to certify the audit in public filings. Business‑office staff said they may delay formal acceptance until January when the federal guidance is final, while noting the auditors do not anticipate additional testing or changes to the work already performed.

Next steps: auditors will wait for the federal compliance supplement to be finalized before issuing the federal single‑audit report; the board expects to consider final acceptance of the audit in January.